Advanced Options Trading

In this section, we begin to look at advanced options trading, by understanding the complexities of these strategies and how they can further benefit your trading style and provide further insight.

Advanced Options

The Options Greeks
1 year(s) ago
13 minutes Read
The Greeks – Delta
1 year(s) ago
10 minutes Read
The Greeks – Gamma
1 year(s) ago
19 minutes Read
The Greeks – Vega
1 year(s) ago
20 minutes Read
The Greeks – Theta
1 year(s) ago
19 minutes Read

Advanced Option Trading Strategies

Once you have a good understanding of basic and intermediate options, it’s time to take a look at the Greeks.

Many clients neglect the effect of greeks exposure even though they play a big part in advanced options trading.   

Understanding the risks involved before you start trading is very important, as losses in some strategies can be greater than your initial investment. Understanding these concepts can be the difference between profit and loss.

In these pages we have tried to demystify some of the advanced options trading strategies and terms to help you harness the power of options, but please don’t hesitate to call us if you’d like to understand more about how these tools can be applied to your specific investment and trading goals.

The Options Greeks
Option Greeks essentially are measures of various sensitivities of an option’s price. They measure different factors that will affect the price of an option and will help you understand what is going on at a deeper level.
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The Greeks – Delta
Delta measures the sensitivity of an option price in relation to its underlying asset price. Put simply, it’s how much an option's price is expected to change per 1 unit change in the price of the underlying asset.
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Moving Forwards with Advanced Options Trading

Now that we have covered the key elements of advanced advanced options trading it’s time to move onwards and jump into the other advanced options trading strategies, each article has been carefully designed by our options trading experts to give you a wider understanding of advanced options, by utilising these core elements you can begin to tailor your outlook on the market and implement strategies that work for you.

The Greeks – Gamma
Gamma is the expected change of an option’s delta given a 1 unit move in the underlying asset price. It is expressed as a percentage and like the delta, it is constantly changing with every point move of the underlying asset.
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The Greeks – Theta
Theta is one of the most important concepts for an options trader to understand because it explains the effect of time on the premium of options purchased or sold.
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The Greeks – Vega
Vega is the measurement of an option's price sensitivity to changes in the volatility of the underlying asset. Vega represents the amount that an option contract's price changes in reaction to a 1% change in the implied volatility of the underlying asset
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Important information: Derivative products are considerably higher risk and more complex than more conventional investments, come with a high risk of losing money rapidly due to leverage and are not, therefore, suitable for everyone. Our website offers information about trading in derivative products, but not personal advice. If you’re not sure whether trading in derivative products is right for you, you should contact an independent financial adviser. For more information, please read our Important Derivative Product Trading Notes.

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